Nvidia has boasted of record revenue in its most recent earnings results, ending the financial year on a high but with the admission that it has ceased to focus its Tegra family on the mobile market.
The CPU and GPU specialist has released its financial results for the final quarter of its financial year 2015 and the year as a whole, and they're good reading for investors and green team fans: quarterly revenue of $1.25 billion, up from $1.14 billion for the same quarter a year ago, is a record for the company, as is its overall annual revenue of $4.68 billion - an impressive 13 percent increase over its 2014 financial year. Coupled with an increase in gross profit margin from 54.1 percent in Q4 2014 to 55.9 percent this year, that's great news for the company.
'Momentum is accelerating in each of our market-specialised platforms, driving record revenue in the quarter and full year,
' explained Jen-Hsun Huang, Nvidia's president and chief executive officer, of the results. 'GeForce and Shield are extending our reach in the rapidly growing global gaming market; our Drive auto-computing platform is at the centre of the advance toward self-driving cars; Grid is enabling enterprises to finally virtualise graphics-intensive applications; and our Tesla accelerated computing platform is helping to ignite the deep learning revolution. The success of these platforms highlights the growing importance of visual computing and the opportunities ahead for Nvidia
While the launch of its Maxwell GPU family helped drive GPU revenue, the company was forced to confront the poor third-party uptake of its Tegra mobile system-on-chip products during the conference call - but Huang claims that isn't a problem. 'Our strategy for Tegra is the focus on automotive, gaming,
' Huang explained in response to an analyst query during the call. 'Wherever opportunities arise in [mobile] OEMs we surely will entertain it, but our fundamental focus is automotive and gaming. You already heard Colette say that our automotive business nearly doubled year-over-year; our gaming business is really strong, and we have some exciting things that we'd love to share with you in the near future. Those are our two focuses for Tegra.
Not addressed during the call was the storm-in-a-teacup brought about by the company's admission that its recently-launched Maxwell-based GeForce GTX 970 graphics card design uses a segmented memory approach with 512MB of its 4GB GDDR5 VRAM partitioned off into a low-priority 'slow' chunk. While customer indignation was high and retailers have near-universally begun accepting returns of cards purchased before Nvidia publicly corrected its specifications, feedback from retailers suggests that returns are in the single-digit percentages and will not affect Nvidia's revenue overmuch for the coming quarter.
A full report on Nvidia's earnings can be found on the official website